Gold is one of the best investments to ever be made available to the general public. When I purchase gold, I am purchasing a product that has been in demand for millennia. Not only is gold highly sought after as a valuable commodity, but it is also used in numerous industries to produce a wide variety of products. This translates into a very steady demand that has always kept the price of gold trending higher.
It is this incredibly high demand that has made gold one of the best investments for storing and preserving wealth through the years. When you purchase gold, you can be quite confident there will be an abundance of buyers available when it comes time to sell no matter how long you plan to hold onto it. This fact alone makes this valuable commodity one of the greatest investment vehicles to ever exist, because it is not exposed to the rapid fluctuations that are commonly seen in other marketplaces like the stock market.
Other investment vehicles like stocks are constantly being exposed to the ups and downs of the broader economy, and this oftentimes results in rapid price fluctuations that are virtually impossible to predict accurately. This is why investors have frequently flocked to the gold marketplace, because investing in gold provides very consistent and reliable returns year after year. When you buy gold, all you have to do is plan on holding onto it long enough to reap a handsome return. And the longer for which you choose to hold onto this valuable asset, the more likely it is you will generate impressive returns from your investment.
Buy an Asset Everyone Wants to Own
The number one reason why you should invest in gold is due to the high demand that exists for this commodity. Everyone wants to own gold for all sorts of reasons. Some people want to own precious jewelry to show off to their friends while others simply want to stockpile a fortune consisting of gold in preparation for an uncertain future.
Others want to own gold simply because it's a great investment opportunity. Others still want to own gold due to its sheer beauty. The allure of gold comes in many forms, and just about everyone is susceptible to its charms.
This allure of gold has led to a consistently high demand that is virtually guaranteed to continue to remain strong going into the future. The demand for gold has in fact been showing increasing strength through the years, and this impressive demand has remained strong for thousands of years. What this means for you is that you can count on the demand for this precious metal to be there when you go to sell it at any point in the future.
The practically guaranteed future value of gold thus makes it one of the most lucrative investment opportunities of the 21st century, and this demand is only set to increase as the uncertainty found in international economies increases due to global turmoil. Thus, if you are searching for an investment opportunity that will serve as a safe haven for many years to come, you will quite likely not be able to find a more attractive investment opportunity than this precious metal.
It's as Good as Gold
One of the primary reasons why many astute investors choose to purchase gold is for the purpose of protecting themselves against inflation. The eroding value of currencies is a global phenomenon that everyone must be aware of if they wish to become a successful investor over a period of decades. The value of the dollar can decrease significantly over a period of just a few decades, but this effect is easily mitigated by simply converting your dollars into pure lustrous gold.
In this way, instead of encountering a decreasing portfolio value due to your holdings being solely in cash, you will get to see the value of your holdings increase over time. The value of gold can easily triple over a period of decades too. This means you will generate lucrative returns instead of watching the value of your portfolio become deflated in price over time by choosing to invest your hard-earned cash in this precious metal.
The Power of Hoarding
Hoarding is a natural inclination of humans. We all want that one thing that everyone wants but can't have. In terms of economics, such hoarding results in excessive demand for certain products, especially those which are scarce. The end result of this hoarding is always greater scarcity and a higher price in return.
Nowhere do we see a better example of this effect than in the gold markets. In fact, the scarcity of gold and the exceptional demand that exists for it has consistently led to far greater scarcity and significantly elevated prices. It is believed that if you were to collect all of the mined gold in the world together in one spot, it would easily fit under the legs of the Eiffel Tower. This means that the overall supply of gold is extremely limited.
A limited supply of a product practically guarantees its ongoing value, and this is particularly true when that product is highly desirable in nature. Being that gold is one of the most desirable substances on the planet due to its natural luster and unmatched physical properties, it's easy to understand why gold is such an incredible investment opportunity.
It's also easy to understand why there's such an appeal to buy gold for the purpose of investment. Many people commonly stockpile this material simply to appreciate its natural beauty. There's nothing quite like the sensation of looking upon the purest of gold. This metal shines beautifully under any light, and it is just absolutely spectacular to hold in your hands due to its astonishing weight.
That's why many people regularly choose to purchase ounces upon ounces of gold coins and bullion for their own personal collections. Not only do these investors obtain the financial benefits of owning an appreciating asset, but they also get to hold their investment portfolio in their hands rather than be forced to watch it fluctuate in value on a computer screen.
Collect Something Worth Buying Again and Again
We all want to save money for the future, but it can be challenging to do so when it feels as if your investment portfolio is located worlds away from you. The stock market is a great place to put money, but there's a disconnect between investors and the stocks they own. By choosing to buy something you can store in your house instead, you will never feel disconnected from your personal investment portfolio. In fact, you can even watch your portfolio grow in physical size when you buy gold coins and bullion for your personal collection. This fact alone has proven to be a wonderful source of motivation for individuals who are interested in saving money for the future.
Instead of watching the value of your portfolio increase in size on a computer screen, you can now watch the weight of your personal collection of gold coins and bullion increase in a way that you can touch and feel. These coins and gold bars are absolutely beautiful to look upon which can further increase the incentive to acquire more for your personal collection. There are even a variety of coins and bullion you can buy to further incentivize yourself to save more money over time. By collecting all of the different types of gold coins that are available today, you will be able to gradually add more and more wealth to your portfolio each year.
The best part is that there are now companies in operation that specialize in buying and selling these coins and bullion. This means you can easily purchase such pieces of gold without any of the risks usually involved in doing so. Typically, when investors buy gold coins and bullion in the open marketplace, they are undoubtedly exposed to a variety of risks related to the purity of their investment.
You can't always be certain jewelry and coins purchased from secondhand dealers are composed of pure gold. By purchasing your gold directly from a reputable company that specializes in selling this commodity, you can now acquire the purest of gold at going market rates. What's even better is that these companies will even buy your gold back once you are ready to sell. This makes these services a one-stop shop for anyone who is interested in purchasing an investment they can see and touch.
Many of these reputable companies even deal in government issued coins and bullion. These precious metals are minted to perfection so that you can be certain you will only be getting some of the purest gold in existence in return for your money. Such pure gold is naturally far easier to sell on the open market compared to products made from gold of a lower quality. In this way, you can easily maintain your peace of mind when investing in gold by knowing that you own some of the finest gold money can buy today.
An Investment That Will Withstand the Test of Time
When most people go in search of a long-term investment, they typically look towards investments that will appreciate over time without facing undue risk. This is why gold is such an invaluable investment vehicle over the long-term. When you buy gold, you are buying a highly durable metal that can withstand the test of time. Other investment opportunities like stamps and collectibles may appreciate over time, but they are not nearly as durable.
Just one fire or natural disaster and valuable collectibles can perish in an instant. Gold on the other hand is incredibly durable and guaranteed to last no matter what is thrown its way. This further adds to the safety of this particular investment vehicle, because you can count on your investment being there when it comes time to sell it in a few decades. Plus, gold doesn't degrade over time either thereby requiring costly maintenance.
If you purchase an investment opportunity like real estate on the other hand, you will likely have to spend countless hours dealing with maintenance issues throughout the life of the investment. Such issues can be both costly and time consuming. Not to mention these issues can simply be a hassle to deal with in general, especially if you do not have a lot of experience managing real estate.
Plumbers and construction crews commonly overcharge for their services thereby further adding to the cost of home ownership. When you purchase gold instead though, you can simply stow it away while it gradually increases in value. Thus, once you've made your purchase, you can just forget about your investment altogether while still reaping the benefits of owning an appreciating asset.
Buy an Irreplaceable Asset
The scarcity of gold is no coincidence. There is actually a very good reason why the supply of gold is remarkably limited. This precious metal is not only rarely found in nature, but it is also absurdly difficult to extract from the ground.
The process of mining gold requires an extensive amount of labor and investment in order to be done successfully. And that's only when it is actually found within the earth. Many people go in search of gold stockpiles only to never find any whatsoever. Those who are fortunate enough to find gold within nature typically only find a very limited supply as well.
All of these factors translate into a limited supply of gold that is likely to remain limited going into the future. The techniques used to mine gold and extract it from the earth have rarely changed through the years. While new processes have been developed to extract the finest of gold from the rocks in which it is embedded, most gold is still extracted using traditional digging techniques. As a result, the supply of gold continues to grow ever so slowly in size since these methods are extremely laborious and cost intensive.
Furthermore, the natural supply of gold is already very limited in nature. There's only so much gold we can find within the earth. And this supply has been greatly reduced in size over the years. Multiple gold rushes have resulted in countless people seeking their fortunes by extracting gold from the ground.
The end result has been a significant reduction in the amount of gold that may be found in certain areas. Thus, when you buy gold, you are buying a product that is becoming increasingly difficult to produce with each passing year.
Demand for Gold is Ever-Increasing
In economics, supply and demand are the two key factors which determine the price of a product. Since the supply of gold is naturally dwindling as more of it gets mined each year, the price is experiencing an upward trend as a result. To further add to this effect, the demand for gold is also growing.
First and foremost, investors are starting to seek out safe havens for their investment portfolios far more frequently than before. As global markets experience greater turmoil, it becomes essential for investors to have a reliable place to put their money when need be. Gold is an obvious choice for investors seeking out a safe haven since its price has traditionally always been on the rise.
The price of gold also typically tends to move in the opposite direction of the price movements found in other markets. Thus, as we see greater fluctuations in the prices of stocks, we will see greater demand for gold as investors attempt to offset their losses in the stock market. When the stock market goes down, the price of gold oftentimes goes up, and this effect helps investors hedge their bets within the stock market to a significant degree.
Not only are we seeing greater demand for gold from financial institutions and individual investors, but we are also seeing various technology sectors using gold in their products at an ever-increasing rate. All sorts of electronics have gold embedded within them, and the greater does the demand become for these electronics, the greater will be the demand for gold. Therefore, as the computer industry continues to grow in size due to the expanding internet of things, it is very likely that we will continue to see a greater demand for gold arise.
Computers containing gold are now being put into everything these days. For this reason, we should certainly expect to see far greater demand for gold in the future as more and more products are developed requiring the use of gold in their construction. The internet of things will demand that practically everything have a computer in it for a variety of reasons. Whether it be tracking important data relating to an object, or simply enhancing the user experience that is provided by a product, the addition of electronics to all sorts of items is indeed a growing trend that is likely to continue accelerating as time goes on.
Additionally, with the growth of the global population is coming an accelerating demand for the finer things in life. What this means for the gold market is that we are likely to see a far greater demand for fine jewelry in the future. As the wealth of nations around the world continues to increase, the demand for jewelry containing gold will likewise increase. The end result will naturally be a skyrocketing price in gold as all of these factors combine to form a level of demand for this precious metal that hasn't ever been seen before in history.
Another new source of demand that is rapidly increasing in popularity is the trend of adding gold to a retirement account. Traditional IRAs have historically been filled with stocks and bonds that provide a reliable return year after year, but some investors are bucking this trend by adding gold to their portfolios.
Gold IRAs are one of the hottest trends in the retirement industry right now, because investors are looking for a more exciting way to amass their savings for retirement. Rather than funnel your retirement savings into boring stocks each month that are quite likely to decrease in value in the near term, you can invest your hard-earned money into beautiful gold coins and bullion instead. As you might imagine, such a trend towards stockpiling massive amounts of gold in this way is only going to lead to far higher prices for this valuable substance in the future.
The stockpiling of gold in this manner immediately reduces the global supply of gold, and since these investors are planning on holding onto their gold for quite some time, it is not likely to be released back into the open market any time soon. Not to mention the fact that many investors find this method of saving further encourages them to add more money to their IRA each month since gold provides for a very stable investment that doesn't discourage them from adding more to their accounts due to rapid price fluctuations.
The stockpiling of gold in this manner also lets investors touch and feel their savings portfolio as well. This makes their retirement account seem more real to them since they can hold it in their hands. Many investors find this method of saving to be most encouraging since they can also collect all kinds of beautiful rare coins to add to their collections in the process. All of this ultimately adds up to investors saving far more in the long run, but it also translates into a significantly higher demand for gold.
Prepare for an Uncertain Future
Gold provides for one of the best ways to hedge your portfolio against the uncertainty of the future. Global crises are known to drive up gold prices as political and economic uncertainties cause investors to flee towards more reliable investment opportunities.
The price of gold is relatively stable versus other types of investments too. It is also very liquid as well. Thus, in the moment you make the decision to sell your gold, you will be able to easily exchange it for cash. This makes it particularly advantageous compared to other investments like real estate since it will allow for you to instantly access the savings you have accrued over time whenever need be.
Diversify Your Portfolio
One of the most common reasons why investors choose to add gold to their portfolios is for the purpose of diversification. A diversified portfolio is one that contains a wide variety of assets. In this way, you can minimize the effects of price fluctuations in one particular asset since they will be counteracted by the price movements of every other asset found in your portfolio.
The primary goal of diversifying an investment portfolio is to mitigate the losses that can accrue when all of your eggs are put into one basket. Therefore, in order to diversify your portfolio properly, you should try to purchase different classes of assets. The greater is the difference between all of the assets in your portfolio, the less likely it will be that an adverse event affecting one class of investments will negatively impact your entire portfolio. This is precisely why gold is such a great asset for the purpose of diversifying your investments.
Gold is almost in a class of its own. It is quite unlike any other asset in existence since it is so rare and in such high demand. It is also widely stockpiled by governments and individuals around the world. Furthermore, it is widely used in industries of production which further adds to the demand for this precious asset.
The price of gold is also known to move in opposing directions compared to other markets. Thus, as your other investments decrease in value due to adverse economic events, the value of your gold holdings will likely be increasing. These opposing price movements will ultimately help to reduce the losses your portfolio incurs through the years. It could even potentially result in your portfolio increasing in value despite global market turmoil as the price of gold continues to skyrocket ever higher.
Why Should You Buy Gold?
As you can see, there are many benefits to purchasing gold today. Some people simply choose to buy this precious metal due to their sheer love for it. There's nothing quite like the feeling of holding pure gold in your hands. Its allure has made it one of the most sought after materials in human history, and it is quite likely that this trend will continue well into the future since gold is one of the most beautiful and highly prized elements on earth.